India markets regulator dismisses case of inadequate disclosures against NDTV

MUMBAI: India’s markets regulator on Friday disposed of proceedings against New Delhi Television Ltd , ruling that the company did not violate disclosure rules.

Here are the key details:

• In 2009, NDTV’s founders entered into a loan agreement that gave the lender options to acquire a significant stake in the broadcaster.

• In June 2018, the Securities and Exchange Board of India (SEBI) had held that the agreement resulted in a change in control.

• SEBI began disclosure violation proceedings since NDTV did not disclose the SEBI finding to stock exchanges.

• The Securities Appellate Tribunal (SAT) set aside SEBI’s ruling in 2022, holding that the agreement did not amount to a change in control as the options were not exercised.

• In its order on Friday, SEBI noted that since there was no change in control, no disclosure obligation arose, and therefore no violation of listing rules occurred.